Rating

The market capitalization represents the public consensus on the value of a company. In a society, including all of its assets can be traded freely across the purchases and sales of shares, which will determine the price of the shares of the company. Its market capitalization is this share price multiplied by the number of shares in issue, giving a total value of shares of the company and hence for society as a whole. Many companies have a dominant shareholder, usually a government or a family. In most stock indices are consistent with this working on a “free floating”, ie, market capitalization is the value of the publicly tradable part of the company. Keep in mind that market capitalization is a market estimate of the value of a company based on future prospects of economic and monetary conditions.The stock price may also change due to speculation about changes in expectations about profits or mergers and acquisitions. It is possible for stock markets to become trapped in a bubble economy, with excess speculation, by any kind of assets like gold or real estate, until things go wrong and the world meant significant losses. By contrast, stock markets usually the main transmission mechanism for most of the pleasant surprises that occur in the global economy. The capitalization is subject to constant fluctuation, since it depends of the trading price, which may vary depending on operations conducted by the company.Another factor is the authorization by the board of the company more shares to be listed on the stock market or the company also has become convertible bonds into common shares, thereby dilute the share price and thus the market capitalization ranges.